Retirement Assets Allocation

The key to achieving
security in your retirement years is to start allocating from an early point in
your life on the basis of a predetermined plan. You should make a clear view on
whether the resources you have allocated for your retirement will be sufficient
to cover your needs.

It is worth mentioning
that starting yearly represents one of the factors that greatly increase your
potential for success. By maintaining longer periods of retirement saving, you
demonstrate investment discipline. Additionally, diversification among
different investment classes is recommended in order to alleviate the risk you
are exposed to.

In order to ensure the
achievement of retirement success in financial terms you should keep in mind
the following simple advices:

Many investors counted on rising stock prices to keep the value of their portfolios unaltered. They drew out up to 10% every year. These projections for high capital returns were mainly based on the high
returns that were experienced during 1982 till 2000.

However, this tactic has its negative sides, since the conditions of the
market cannot be determined with exact accuracy due to its dynamics. Past
performance can be used as a basis for making future predictions, but you
should always keep in mind that this is a prediction not a certainty.

Therefore, it is always better to limit your withdrawals to a minimum
and enjoy the accumulated assets later in your retirement years.

Become used to risk.

When deciding on the types of investments you will include in your
retirement portfolio, you should carefully consider their long-term risk
exposure. For example, high-grade bonds, US Treasury securities or money
markets provide sufficiently high levels of safeness, but over the long-term
they are exposed to significant higher levels of investment risk.

Affected by the general downturn of the market in recent years, many
investors have sold their equity funds and individual equity holdings. This is
not recommended since the possibility of outlasting your assets exists. You can
only afford to implement such a conservative action if you possess substantial
cash resources.

In order to achieve long-term wealth preservation, waiting until equity
market volatility disappears may be the right tactic for those retirees that
have a long lifespan.

Continue to work even after you retire.

You should not stop working on your investment portfolio after you have
reached retirement. You should keep a constant track on it in order to balance
any disturbances that may occur in your asset allocation. In this way you will
ensure yourself with money for a longer free of financial concerns retirement.

Since market conditions are very dynamic combined with the fact that
your lifestyle will most sure change, you should keep a constant watch on your
portfolio.

Finally, keep in mind that withdrawing as little as possible from your
retirement account, making the appropriate asset allocations and continuing to
work on your investment portfolio even after retirement may ensure you with
financially happier retirement years.